Binance founder Changpeng “CZ” Zhao has been released from prison two days ahead of his scheduled release date. The early release comes as a result of a federal policy that allows for the early release of prisoners if their release date falls on a weekend or holiday.
Zhao was sentenced to four months in prison in April for violating the Bank Secrecy Act (BSA) by failing to set up an adequate know-your-customer (KYC) program at Binance. As part of his guilty plea, he also agreed to pay a $50 million fine and step down as CEO of the crypto exchange. The exchange itself agreed to pay a $4.3 billion fine to various U.S. regulators to settle related charges.
Despite the unusual nature of custodial sentences for BSA violations, Zhao’s four-month sentence was considered lenient compared to the three years sought by federal prosecutors.
U.S. District Judge Richard Jones of the Western District of Washington, seemed to be swayed by Zhao’s squeaky-clean criminal record and positive reputation, aided by 161 letters of support from his friends, family, and colleagues.
Zhao served three months in a low-security prison, Lompoc II, on California’s central coast. In August, he was moved to a halfway house in San Pedro, California. His early release from the halfway house marks the conclusion of his prison sentence.
The early release of CZ could have positive implications for the crypto market, as Zhao is a prominent figure in the industry.
Also Read: Can BNB Break Its All-Time High After Release of CZ?
